Square Enix 2011 Annual Report Download - page 55

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Derivative Transactions
■ Year ended March 31, 2010
1. Derivative transactions for which hedge accounting has not been
applied
Not applicable
2. Derivative transactions for which hedge accounting has been
applied
Not applicable
■ Year ended March 31, 2011
1. Derivative transactions for which hedge accounting has not been
applied
Not applicable
2. Derivative transactions for which hedge accounting has been
applied
Not applicable
Employees’ Retirement Benefits
■ Year ended March 31, 2010
1. Overview of employees’ retirement benefit plan
The Company and its domestic consolidated subsidiaries have
a lump-sum retirement payment plan in accordance with their
internal bylaws.
The projected benefits are allocated to periods of service on
a straight-line basis. The Company’s domestic consolidated
subsidiaries apply a simplified method in the calculation of the
retirement benefit obligations. In addition, certain of the Company’s
overseas subsidiaries maintain defined contribution retirement
pension plans.
2. Retirement benefit obligation:
Millions of yen
Retirement benefit obligation ¥(10,742)
Fair value of plan assets 6,431
Net unfunded obligation (4,311)
Unrecognized prior service cost (138)
Unrecognized actuarial loss 2,280
Allowance for employees’ retirement benefits ¥ (2,170)
3. Retirement benefit expenses:
Millions of yen
Service cost ¥ 533
Interest cost 168
Expected return on plan assets (86)
Amortization of prior service cost (333)
Amortization of net actuarial gain 804
Retirement benefit expenses ¥1,086
Note: In addition to the retirement benefit expenses shown above, the Company
recorded severance payments related to business restructuring amounting to
¥1,985 million in the fiscal year ended March 31, 2010.
4. Assumptions used in accounting for the above plans:
Periodic allocation method for projected benefits Straight-line basis
Discount rates 1.329-2.035%
Expected rate of return on plan assets 1.329%
Period over which prior service cost is amortized 1-5 years
Period over which net actuarial gain or loss
is amortized 1-5 years
■ Year ended March 31, 2011
1. Overview of employees’ retirement benefit plan
Same as the year ended March 31, 2010
2. Retirement benefit obligation:
Millions of yen
Retirement benefit obligation ¥(11,255)
Fair value of plan assets 6,209
Net unfunded obligation (5,046)
Unrecognized prior service cost —
Unrecognized actuarial loss 1,984
Allowance for employees’ retirement benefits ¥ (3,061)
3. Retirement benefit expenses:
Millions of yen
Service cost ¥ 542
Interest cost 152
Expected return on plan assets (82)
Amortization of prior service cost (81)
Amortization of net actuarial gain 720
Retirement benefit expenses ¥1,249
Note: In addition to the retirement benefit expenses shown above, the Company
recorded severance payments related to business restructuring amounting to
¥75 million in the fiscal year under review.
4. Assumptions used in accounting for the above plans:
Periodic allocation method for projected benefits Straight-line basis
Discount rates 1.250-1.969%
Expected rate of return on plan assets 1.250%
Period over which prior service cost is amortized 1-5 years
Period over which net actuarial gain or loss
is amortized 1-5 years
53